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Quantum computing and the bigger picture – ComputerWeekly.com

Every few years IBM brings out a new addition to its Z series mainframe family. From the information accompanying the release of the new enterprise system, IBM appears to be touting the new z16 machines ability to handle real time fraud detection for instant payments across the financial sector. It also offers an AI (artificial intelligence) accelerator, using IBMs Telum chip. This will certainly be good news for many financial institutes. For instance, speaking at a recent IBM-hosted roundtable, Steve Suarez, global head of innovation, finance & risk at HSBC, described how the bank was drowning in data. Suarez sees a need to have technology that can help the bank provide insights that actually benefit people.

What is interesting from the virtual z16 briefing Computer Weekly attended is IBMs focus on the new machines ability to protect against hackers using quantum computing to break the strong encryption that underpins financial transactions.

IBM distinguished engineer, Anne Dames said: Good technology can be used to do bad things. In other words, a quantum computer could be used to break the cryptographic keys that are used to encrypt data.

We are entering a new cryptographic era, she warns, adding that the IT industry needs to act now before there is an effective quantum computing based attack.

The worst case scenario IBM paints is where a successful hacking attack gains access to a large quantity of encrypted data. Since this data is encrypted, it is near impossible to decipher it in a realistic timescale. The US National Institute of Standards and Technology warns that if large-scale quantum computers are ever built, they will be able to break many of the public-key cryptosystems currently in use. This would seriously compromise the confidentiality and integrity of digital communications on the Internet and elsewhere. Nist is encouraging the IT sector to develop post-quantum cryptography and IBMs z16 is one of the first systems to claim it is quantum safe.

While this is clearly an important development and IBMs efforts should be applauded, one cant help worrying that IBM, Nist and the IT sector at large, are somehow missing the bigger picture. Breaking cryptography is one thing, but quantum computers have the potential to revolutionise drug development and the ability to create new chemical processes such as to reduce carbon emissions. The flip side is that these techniques may also be used to develop devastatingly effective, targeted chemical and biological weapons. As such, policy makers need to wake up to the risk, and track quantum computing in the same way that atomic, biological and chemical weapon materials are monitored.

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Quantum Week at Yale geared toward novices and experts alike – Yale News

Yales hub for quantum research will soon entangle the campus in the best possible sense in a full week of mind-bending science, artistry, and discussion devoted to the wonders of quantum research.

Quantum Week at Yale, organized by the Yale Quantum Institute (YQI), will feature a hackathon, a lab tour, a movie screening, a record launch party, hands-on computer programming, a superconductive jewelry display, and an assortment of quantum-related library and museum exhibits.

The activities begin April 8 and run through April 14. A full list of events is available here.

Yales quantum scientists are at the very top of this field, said Florian Carle, YQI manager and coordinator for the event. We want to take some of the excitement we see in the labs and at YQI and share it with the rest of the campus.

Quantum science delves into the physical properties that explain the behavior of subatomic particles, atoms, and molecules. Over the past century, quantum research has transformed disciplines as diverse as physics, engineering, mathematics, chemistry, computer science, and materials science.

Over the past 20 years, Yale researchers have propelled quantum research, particularly in quantum information science and quantum computing, with a series of groundbreaking discoveries including the first demonstration of two-qubit algorithms with a superconducting quantum processor.

Yales research has led to unprecedented control over individual quantum objects, whether those objects are naturally occurring microscopic systems such as atoms, or macroscopic, human-made systems with engineered properties. Researchers say these advances may soon enable them to perform otherwise intractable computations, ensure privacy in communications, better understand and design novel states of matter, and develop new types of sensors and measurement devices.

This is the time when computer scientists, mathematicians, physicists, and engineers are all coming together, said Yongshan Ding, assistant professor of computer science, who will lead a programming workshop on April 14 that shows visitors including those without any experience with quantum computing how to play with quantum interference patterns.

People can just code away, Ding said. My vision is that by exposing people to these activities, we can build a quantum-native programming language. This is a new paradigm of computation, so were going to need new ways to program for it.

YQI has partnered with 18 Yale departments and centers to create 23 events for Quantum Week at Yale. One of the challenges in organizing the week, Carle explained, was developing an engaging mix of activities suited for both experienced researchers and quantum science novices.

To that end, the week is organized around four components: Understanding Quantum, Art & Quantum, Career and Entrepreneurship, and For Researchers.

The hands-on programming event, for example, comes under the Understanding Quantum banner. Other include an April 9-10 Quantum Coalition Hack, hosted by the Yale Undergraduate Quantum Computer Club; an April 11 tour of superconducting qubit laboratories; and a quantum-related exhibit of rare books at the Beinecke Rare Book and Manuscript Library on April 11.

Were always looking for ways that our libraries can engage with the academic work going on at Yale, said Andrew Shimp, who consulted on Quantum Week events at Yale libraries. Shimp is Yales librarian for engineering, applied science, chemistry, and mathematics. One of the unique things a Yale library can offer is the chance to view rare collections that arent necessarily digitized yet.

The quantum exhibit at the Beinecke Library, for example, includes materials from quantum science pioneers such as Albert Einstein, Werner Heisenberg, and Max Planck. There is also an astronomy textbook, published in 1511, that includes the word quantum in its title. The title is Textus de Sphera Johannis de Sacrobosco: cum additione (quantum necessarium est) adiecta / Nouo commentario nuper edito ad vtilitate[m] studentiu[m] philosophice Parisien[em]. A brief English translation would be Sphere of Sacrobosco.

Under the Art & Quantum heading, there will be an April 8 screening of the 2013 indie thriller Coherence; a visual arts competition called Visualize Science hosted by Wright Lab on April 13; a launch party for Quantum Sound (a record project begun at YQI in 2018) on April 13; a display of Superconductive Jewelry throughout the week at YQI; a Quantum and the Arts exhibit all week at the Arts Library; an April 13 event hosted by the Yale Schwarzman Center devoted to historical preservation of technology ephemera, called Dumpster Diving: Historical Memory and Quantum Physics at Yale; and a new exhibit at the New Haven Museum, The Quantum Revolution, that opens April 13 and features drawings by former YQI artist in residence Martha Willette Lewis.

Carle is curator for the New Haven Museum exhibit. We wanted to show the evolution of quantum science at Yale, he said. It will take people from some of the first qubits in 1998 to Badger, the dilution refrigerator that ran the first two-qubit algorithms with a superconducting quantum processor in 2009.

Quantum computers require extremely cold temperatures near absolute zero in order to reduce operational errors.

The weeks Career and Entrepreneurship component will include a discussion of quantum startups hosted by The Tsai Center for Innovative Thinking at Yale (Tsai CITY) on April 12; a conversation with IBMs Mark Ritter on the global implications of quantum research, hosted by the Jackson Institute for Global Affairs on April 12; a session on how to access market research for major industry analysts, hosted by the Yale University Library, on April 12; and a series of panel discussions on how to join the quantum workforce.

Finally, the For Researchers component of Quantum Week at Yale will feature a quantum sensing workshop at Wright Lab on April 8; and an April 14 lecture by quantum researcher Nathan Wiebe of the University of Washington.

The final day for Quantum Week at Yale, April 14, also happens to be World Quantum Day, Carle said. Our hope is that by then, students all over campus will be aware of quantum work being done here and want to explore it themselves in some way.

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Analyst Says One Altcoin Has Best Looking Chart in All of Crypto, Updates Outlook on Two Ethereum Rivals – The Daily Hodl

A veteran trader says one Ethereum-based altcoin has the best looking chart on the market and that two ETH rivals are set to rally.

The pseudonymous crypto trader known as Cantering Clark says that hes watching Frax (FXS), an algorithmic stablecoin system.

Based on the traders analysis, FXS can potentially run to his target at $42.

There is no better looking chart right now.

The closely tracked analyst also has his eye on smart contract platform Avalanche (AVAX). According to Cantering Clark, AVAX also has a uniquely strong market structure, threatening to print fresh 2022 highs.

Would you just look at how technically sound AVAX looks for a move to the highs.

At time of writing, AVAX is trading for $99.36.

Cantering Clark also says decentralized application (DApp) platform Near (NEAR) is gearing up for a strong rally. He points out that NEARs last daily candle exceeded both of the previous two and says it could be on its way above $17.

Send NEAR up through the gap already. Bullish engulfing candle of the last two-day range and above the range highs.

Late last year, the NEAR ecosystem announced an $800 million fundraising effort to stimulate growth for its native projects and startups. With half of the funding already distributed, Cantering Clark says traders should take notice.

NEAR protocol with over $400 million in funding for the ecosystem announced. Tailwinds during a time like this. Use it to your advantage until it stops working.

Featured Image: Shutterstock/Gorodenkoff/Sensvector

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Crypto Analyst Warns Deep Corrections in Sight for Waves (WAVES), Apecoin (APE) and One More Altcoin – The Daily Hodl

A closely followed crypto strategist is predicting deep pullbacks for Waves (WAVES), ApeCoin (APE) and one other altcoin as the digital asset market takes a breather.

Pseudonymous strategist Altcoin Sherpa tells his 171,500 Twitter followers that he sees custom token and decentralized application creation platform Waves correcting all the way down to $20.

WAVES: Say goodnight.

With Waves currently exchanging hands for $29.41, Altcoin Sherpas target represents a 32% potential downside.

Next up is APE, an altcoin created for the Bored Ape Yacht Club non-fungible token (NFT) community. According to Altcoin Sherpa, APE could retrace back to $9.50, which is about 17.5% below its current price.

APE: Long out of my position; would be willing to buy this one much lower. $8.00 or so. There should be a bounce at $9.50ish though, likely a good scalp entry.

ApeCoin is trading for $11.53 at time of writing,

The trader is also keeping a close eye on Zilliqa (ZIL), a smart contract-enabled blockchain for enterprise solutions. He says that ZIL could further correct to $0.11 after posting a massive 375% rally that saw it spike from $0.05 to $0.218 in just a few days.

Better to short these types of coins than BTC if you think BTC is bearish. [The] reason is that these had their blowoff tops already and will likely go down if BTC pumps and dump even harder if BTC dumps. Target =$0.11.

At time of writing, ZIL is valued at $0.127. A correction to Altcoin Sherpas target marks a downside risk of nearly 15%.

Featured Image: Shutterstock/Nathapol Kongseang/Natalia Siiatovskaia

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Crypto Analyst Warns Deep Corrections in Sight for Waves (WAVES), Apecoin (APE) and One More Altcoin - The Daily Hodl

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Altcoin Ecosystem Built on Ethereum (ETH) Primed for Serious Gains, According to Closely Followed Crypto An… – The Daily Hodl

A popular crypto trader thinks one decentralized finance (DeFi) altcoin built on Ethereum (ETH) is on the verge of a big recovery.

The pseudonymous crypto analyst Credible tells his 320,600 Twitter followers that Ethereum-based Curve Finance (CRV) is revving its engines.

Curve is trading at $2.91 at time of writing. Credible thinks the DeFi altcoin could revisit the mid $2 range if Bitcoin (BTC) corrects back to the low $40,000s. He also predicts CRV will bounce back to the $4-$5 range soon. The crypto asset hasnt reached those heights since mid-January.

Credible predicts BTC will retest the low $40,000s in the short term, though he thinks the top-ranked crypto asset by market cap is primed to continue marching upwards after that dip.

Bitcoinis trading at $46,890.63 at time of writing.

Credible is also predicting a pullback for DeFi altcoin Convex Finance (CVX).

Convex, which offers no withdrawal or minimum performance fees, rewards liquidity providers andCRV stakers on the Curve Finance exchange. CVX can be staked into Convex Finance to earn a share of Curves liquidity pool earnings.

$40 resistance hit may see a bit of a pullback here before continuation. Dips to the $20-$30 region are buy opportunities. Bribes/incentives this round also coming in at around $0.80 per vlCVX. Nearly 2x the last round which was just two weeks ago.

CVX the gift that keeps on giving.

CVX is trading at $37.28 at time of writing.

Featured Image: Shutterstock/Perfect Lazybones/Natalia Siiatovskaia

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3 Cryptos to Keep an Eye on Following Their March Rise – InvestorPlace

After a volatile few months, prices for cryptos are finally showing signs of stabilization and even recovery. InvestorPlace.com readers will well remember that the global cryptocurrency market capitalization (cap) surpassed $3 trillion in November 2021. But then it plunged to $1.5 trillion by January 2022.

As of today, the market cap is around $2.1 trillion territory. Meanwhile, the surge in crypto prices in 2021 sparked a new wave of investments, including exchange-traded funds (ETFs).

For instance, in October 2021, the ProShares Bitcoin Strategy ETF (NYSEARCA:BITO) became the first U.S.-listed ETF that provides exposure to Bitcoin (BTC-USD) futures contracts. The BITO ETF has lost over 5% year-to-date (YTD).

Another fund, the Bitwise 10 Crypto Index Fund (OTCMKTS:BITW), has soared 10.7% over the past month, yet trades at 60% below its price a year ago. This fund provides diversified exposure to bitcoin and leading cryptos.

While we may see fewer cryptos reach new record highs this year, crypto bulls are always on the lookout for the best altcoins to buy. A recent Mordor Intelligence report forecasts that the global cryptocurrency market is poised to grow at a whopping compound annual growth rate (CAGR) of over 60% by 2026.

With that information, here is my selection of three cryptos that could gain significant traction in the coming months:

Our first crypto is Cronos(CRO-USD), formerly known as Crypto.com Coin. Thus, the fortune of CRO-USD istied to the blockchain network associated with the Crypto.com ecosystem.

This platform has doubled its user base since the end of 2020 to over 10 million users worldwide. CRO-USD is designed to allow users to make cryptocurrency payments to merchants globally. The token serves as an intermediary currency that allows for the conversion of cryptocurrencies to their fiat counterparts at a low cost.

The network boasts partnerships with Formula 1owned by Liberty Media Formula One(NASDAQ:FWONA), the Philadelphia 76ers, Paris Saint-Germain, and the Ultimate Fighting Championship (UFC). Moreover, Crypto.com bought naming rights to Lakers Staples Center over the next 20 years in a deal worth $700 million.

CRO-USD hit an all-time high (ATH) of $0.9698 in late November. The altcoin has gained over 50% during the past year. Its market cap of $11.35 billion positions it as the 19th largest altcoin.

Our second altcoin, Polkadot(DOT-USD), was launched by the Swiss-based Web3 Foundation. Its objective is to increase the scalability and speed necessary for blockchains to go mainstream. Polkadot essentially serves as an intermediary in apps where various blockchains can run independently in a single network.

Parachains are the diverse individual layer-1 blockchains that run in tandem within the Polkadot ecosystem. Then Polkadot connects multiple parachains into a unified network. As a result, there can be a cross-chain transfer of data or digital assets between Ethereum (ETH-USD) and other blockchains.

The network boasts a booming ecosystem of projects that range from decentralized finance (DeFi) tonon fungible tokens (NFTs). Examples include the NFT cross-chain trading system Efinity (EFI-USD); decentralized trading exchange Mangata X; and Moonbeam Chain, which runs Ethereum compatible smart contracts.

DOT-USD is the native cryptocurrency used to make transactions, govern or create parachains. The altcoin hit a record high of $55 in early November. Over the past year, DOT-USD has declined roughly 50%. It ranks as the 11th largest altcoin with a $19.7 billion market cap.

The final crypto on our list is Terra(LUNA-USD). It is a blockchain protocol that uses fiat-pegged stablecoins to power global payments systems. It is built on the Cosmos(ATOM-USD) platform, which relies on a proof-of-stake (PoS) consensus mechanism that can finalize transactions in just six seconds.

Terra is built around two cryptocurrencies. While Terra-backed stablecoins like TerraUSD (UST-USD) are connected to the value of physical currencies, LUNA-USD is designed to mint more Terra stablecoins.

When the price of a Terra-backed stablecoin increases above the fiat currencys value, users are incentivized to burn their LUNA-USD for a profit. This step reduces the number of overall tokens left in circulation. As a result, LUNA-USD becomes more scarce and, therefore, more valuable.

Terra utilizes various DeFi products that aim to fuel demand for Terra stablecoins. The platform is among the most popular DeFi ecosystems in the blockchain industry.

LUNA-USD price hit an ATH of $119.18 on Apr. 5. As a result, it is up almost 600% over the past year. Its market cap of $35.2 billion positions Terra as the 9th largest altcoin.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to theInvestorPlace.comPublishing Guidelines.

Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.

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Poor volumes to HODLer conviction- why Fantom [FTM] has been falling behind – AMBCrypto News

While at the moment, most of the altcoins in the market are witnessing a drop in price due to the excessive bullishness witnessed over the last couple of days, there are some that got caught in the crossfire even before they could finish their bull run, one of them being Fantom.

The total crypto markets RSI breached the OB zone, which resulted in the market cooldown. However, that was not the case with Fantom since the altcoin had barely scratched into the bullish zone before being thrown back down.

As a result, the altcoin lost over 14.66% in the last 24 hours, and its RSI is already in the bearish zone.

Recovery for FTM from here on is gonna get much more difficult than it already was. In the last two months, this was its second attempt at flipping $1.8207 into support which failed.

But its not just in terms of price that the altcoin is failing, when it comes to investors, FTM isnt performing very well either.

Firstly, the network barely has 87k investors trading the altcoin. On top of that, those that were active contributed to some volume on-chain, but since January, even those investors have been disappearing.

Down from 3k three months ago, daily users on-chain are at just 572 as of today.

Naturally, the total volume of FTM traded on the chain is also less than $20 million on average.

Now there are two ways that this lack of investor participation phenomenon can be explained.

First being the absence of optimism and the second being excessive optimism. i.e., investors are either losing faith in the coin, or they have a little too much of it to HODL their FTM despite the coin losing so much money.

While the mean coin age indicates that the sentiment of HODLing is pretty strong right now, looking at investors sentiment, it seems like there is some hesitation in investors.

However, it isnt as significant to influence a negative decision. Plus, the same is possibly going to turn positive soon, which would be an indication that the lack of participation is confidence induced.

Further backing this is the distribution of supply among FTM holders, where the HODLers (FTM holders of more than one year) balance has increased from 23% to 39% since January, which shows that investors are voluntarily waiting out for a successful rally for a new all-time high.

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Could Miami become the cryptocurrency capital of the world? – NewsNation Now

(NewsNation) With interest growing in cryptocurrency by the day, the city of Miami is hoping to lead the world in the new technology.

Bitcoin 2022, which organizers say is the biggest Bitcoin event in the world, is taking place there this week.

Thousands of Bitcoin enthusiasts are in Miami learning how to network, pitch ideas and share announcements on the cryptocurrency.

And many parts of Miamis currency are changing to crypto as well. Some bars have already accepted cryptocurrency over cash, and Miami Mayor Francis Suarez has pledged to take his entire salary in Bitcoin.

Crypto has become almost a preferred method of payments for a lot of people across the Web3 ecosystem here in Miami, Chris Adamo, co-founder of venture capital firm Flamingo Capital, said. Web3, according to Wired, refers to a decentralized online ecosystem, where users can earn and maintain an ownership stake by helping to develop and maintain blockchain services.

Worldwide, there are over 300 million cryptocurrency users, including tens of millions in the U.S., according to crypto exchange company TripleA. Roughly 16% of all adult Americans have invested in cryptocurrency, and the market for it has risen rapidly over the last few years.

Cryptocurrency reached its peak value of nearly $3 trillion last November. driven in part by the coins incredibly high trading value.

New York City and Silicon Valley have been leading the industry in fundraising for blockchain startups with $6.5 billion and $3.9 billion. Now, Miami is making a name for itself, with firms pulling in more than $760 million in funding.

Suarez has spent the last two years pushing for Bitcoin and attracting investors. His latest victory, getting to display an 11-foot, 3000-pound crypto bull in the heart of Miami, a nod to Wall Streets charging bull statue in New York City.

[Miamis] definitely become the capital of crypto in America for sure, Adamo said. This is the place to be if youre in America and youre into any type of cryptocurrency or Web3 companies.

The largest company to move to Miami so far is Blockchain, which is currently building an office for its 200 employees.

Bitcoin, cryptocurrencys most popular and oldest coin, reached a value of $68,990 per coin last November. But with crpto currency being so new, these sky-high prices are still pretty volatile. Looking back at the overall valuation of the crypto market, there have been many rises and dips over the last few months.

While many are touting cryptocurrencys benefits, some critics question the assumptions that have been made about the claimed value and utility of the new technology.

Right now, the crypto market is valued at $1.9 trillion, which is still higher than a few years ago, but down $1.1 trillion from its peak.

The Associated Press contributed to this report.

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New Hampshire woman says hacked phone led to theft of thousands of dollars’ worth of cryptocurrency – WMUR Manchester

A New Hampshire woman who had thousands of dollars stolen from a cryptocurrency account is sharing her story to prevent others from being hacked.The woman, who asked to just use her first name, Michelle, said she thought she had done everything she needed to do to stay safe, but her hacking nightmare began with a simple click on her phone."It said, 'Samsung account update,' and I pressed it, and I think that's what it was," she said. "Within probably an hour, my phone went down."Michelle said her cell service provider got her phone working, but when she logged into one of four cryptocurrency accounts, it was empty."It's about $15,000 that's gone, just like that," she said.She asked her provider to restore emails that might have been deleted, and that's when she saw withdrawals."He would know my account screen name, forgot password, they'd email the password, and then he got it and he got in," Michelle said.Michelle said the hacker couldn't get into two other accounts but got access to a third, which is now frozen. He sent her a ransom note, and thousands of dollars more are now in limbo.Experts said Michelle's click likely installed malicious code."And when you do that, you then open up your phone to be available to whoever from wherever for whatever," said James Gorman, of Cyber Defense Media Group. "She got hit by the equivalent of a street thug walking down the street and stealing her purse."Cybercriminals have access to sophisticated tools, Gorman said."You can lease that technology. You can rent that technology. You can create that technology," he said. "It's all out there on what we call the dark web."He said it's important for people to take precautions, including using difficult-to-guess passwords, varying them and using multi-factor authentication whenever possible."You can make yourself harder to hack by thinking before clicking and keeping your software and operating systems up to date," Gorman said."I was like, if they can do this to me, I want to let people know you are never safe," Michelle said.Experts said if credit cards or bank accounts were involved, any lost funds would likely be recoverable. With cryptocurrencies such as bitcoin, the funds could be lost.Anyone who believes they're a victim of an online crime can report it to the FBI.

A New Hampshire woman who had thousands of dollars stolen from a cryptocurrency account is sharing her story to prevent others from being hacked.

The woman, who asked to just use her first name, Michelle, said she thought she had done everything she needed to do to stay safe, but her hacking nightmare began with a simple click on her phone.

"It said, 'Samsung account update,' and I pressed it, and I think that's what it was," she said. "Within probably an hour, my phone went down."

Michelle said her cell service provider got her phone working, but when she logged into one of four cryptocurrency accounts, it was empty.

"It's about $15,000 that's gone, just like that," she said.

She asked her provider to restore emails that might have been deleted, and that's when she saw withdrawals.

"He would know my account screen name, forgot password, they'd email the password, and then he got it and he got in," Michelle said.

Michelle said the hacker couldn't get into two other accounts but got access to a third, which is now frozen. He sent her a ransom note, and thousands of dollars more are now in limbo.

Experts said Michelle's click likely installed malicious code.

"And when you do that, you then open up your phone to be available to whoever from wherever for whatever," said James Gorman, of Cyber Defense Media Group. "She got hit by the equivalent of a street thug walking down the street and stealing her purse."

Cybercriminals have access to sophisticated tools, Gorman said.

"You can lease that technology. You can rent that technology. You can create that technology," he said. "It's all out there on what we call the dark web."

He said it's important for people to take precautions, including using difficult-to-guess passwords, varying them and using multi-factor authentication whenever possible.

"You can make yourself harder to hack by thinking before clicking and keeping your software and operating systems up to date," Gorman said.

"I was like, if they can do this to me, I want to let people know you are never safe," Michelle said.

Experts said if credit cards or bank accounts were involved, any lost funds would likely be recoverable. With cryptocurrencies such as bitcoin, the funds could be lost.

Anyone who believes they're a victim of an online crime can report it to the FBI.

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Here’s My Top Cryptocurrency to Buy and Hold Forever – The Motley Fool

Having soared by almost 15,000% since its 2017 launch, Solana( SOL 0.56% ) is the sixth-largest cryptocurrency with a market cap of $37 billion. But the fast-growing asset may still be in the beginning stages of reaching its long-term potential. Let's explore why Solana is my top cryptocurrency to buy and hold forever.

Solana is one of several next-generation cryptocurrencies called "Ethereum killers" because of their ability to disrupt blockchain technology. Ethereum revolutionized the industry by introducing support for decentralized applications (dApps), which are programs that use self-executing smart contracts to offer services on the blockchain. Solana takes things a step forward with its industry-leading scalability.

Image source: Getty Images.

While Ethereum can only handle a measly 15 transactions per second, Solana can manage 50,000 -- and it is much cheaper to use, with an average transaction fee of just $0.00025 compared to Ethereum's $2.40. Solana achieves this through its innovative design.

Unlike Ethereum, which uses a cumbersome proof-of-work (PoW) system where miners solve computational puzzles to update the blockchain, Solana uses proof-of-stake (PoS). In a PoS system, miners verify transactions by locking up tokens they own (staking) in return for newly minted coins. Solana supplements this system with an important innovation called proof-of-history (PoH), which records timestamps on the blockchain to speed up the verification process.

Much of the platform's growth is driven by its popularity with dApp developers -- in particular decentralized finance (DiFi) dApps, which are financial services operating on the blockchain without a centralized intermediary, such as a bank or broker.

Solana is ideal for DeFi because of its speed. The platform has attracted projects ranging from decentralized exchanges like Serum(which allow users to buy and sell cryptocurrencies on the blockchain) to decentralized banks likeOxygen, designed to let users store value and earn interest on their deposits.Solana is the fifth-largest DeFi ecosystem with $7.4 billion in total value locked (TVL), a term that represents the sum of all assets deposited in its DeFi-related applications.

But Solana's developers, Solana Labs, aren't limiting their efforts to on-chain finance. The organization is also targeting real-world fintech through a project called Solana Pay, designed to make it easier for customers to use Solana's native token, Sol, and other cryptocurrencies for online shopping through a convenient user interface. This project could be a first step in taking advantage of Solana's technical abilities to power real-world utility.

Cryptocurrency has been off to a weak start in 2022, with its total market cap declining 9% to $2 trillion at the time of writing. But the industry has a track record of bouncing back from its declines. Assets like Solana could help power the rebound with their spectacular technical capacities and forward-looking development strategy.

This article represents the opinion of the writer, who may disagree with the official recommendation position of a Motley Fool premium advisory service. Were motley! Questioning an investing thesis even one of our own helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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